Canada is considering retaliatory measures against the United States after President Donald Trump announced another round of steep tariffs on Canadian goods, escalating an already tense trade relationship between the two countries.
Prime Minister Mark Carney said Canada would take whatever measures are necessary to defend Canadian workers, businesses and the economy if the new U.S. tariffs move forward. His comments came during a meeting with provincial and territorial premiers in Charlottetown, Prince Edward Island.
The United States has announced tariffs of 50 per cent on a range of Canadian goods, scheduled to take effect on August 19. The measures are expected to affect products including dairy, alcohol, furniture and clothing, raising concerns about further disruption to businesses that rely heavily on cross-border trade.
Carney said Canada remains focused on negotiations with Washington but made clear that retaliatory measures remain an option if an agreement cannot be reached.
Provincial leaders have proposed different approaches to responding to Washington. Ontario Premier Doug Ford has advocated matching U.S. tariffs “dollar for dollar,” while British Columbia Premier David Eby has raised the possibility of restricting American access to critical minerals. Alberta and Saskatchewan have opposed using export restrictions as leverage.
The latest tariff threat comes as Canada and the United States continue negotiations over their broader economic and trading relationship. Carney and Trump recently agreed to intensify bilateral discussions in an effort to resolve the growing dispute.
The United States remains Canada’s largest trading partner, meaning prolonged tariffs could have significant consequences for manufacturers, exporters, workers and consumers on both sides of the border.
With the August 19 deadline approaching, Canadian governments and businesses are closely watching negotiations for signs of whether a deal can be reached or whether the dispute will escalate into another round of retaliatory trade measures.